THE K4-MST Restart model

In early 2025 the K4-MST team began work on addressing the depressed early-stage investment environment and ways to improve exits.  One of the results of this effort was the creation of the ReStart Program.

 

The ReStart Program involves a deep dive into the more than 300 portfolio companies in the K4-MST 16 year investment history to identify those companies with exceptional science, technology, or secret sauce that have not met the commercialization or acquisition targets promised by the founders and management teams.  Once these companies have been identified additional research to confirm the market opportunity still exists along with a updated competitive analysis.    

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Based on the positive results of the analysis the K4-MST ReStart Team determines if the company can meet the following criteria in the ReStart Program.
     1.  The effort will require only one investment round, if any, to get to an ROI for the investors.

     2.  The liquidity event will take no more than 24-36 months.

     3.  The ROI will be in the 4X - 10X range.

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If this criteria can be met the ReStart Team approaches the founders and stockholders with their proposal to move the Company into the ReStart Program.  If there is agreement to do so the ReStart Team takes over the company as follows:

     1.  The equity holders of the company assign no less than 51% of the voting control of the company to the ReStart Team.  This 
           control is irrevocable for no less than 24 months with a 12 month option based on milestones.  Founders and key investors may
           be offered Advisory Board roles if needed.

     2.  The existing BOD-BOM is dismissed and a new active, hands-on board is created.

     3.  The existing management team is dismissed and a very experienced management team is identified and put in place.  Typically
            this team joins the ReStart for a success based equity position with nominal salary requirements.

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The ReStart Program offers existing investors first rights in the ReStart round and then opens the round to IPO Angels members.  The advantages of participation in these ReStart efforts are obvious.

     1.  Great science - technology with a waiting marketplace.

     2.  De-risked investment opportunity - typically these companies just need to pivot from R&D to Sales & Marketing.

     3.  Open communication and quarterly reports from the Board and Management Team.

     4.  Liquidity targets identified and validated 24 - 36 months, not 10-12 years.